A former Staten Island securities-lending executive will spend three years in federal prison for kicking back more than $1 million to a family member and lying to authorities.

Darin DeMizio, 43, of Westfield, N.J., formerly of Bulls Head, was sentenced to 38 months behind bars following his jury conviction in March of conspiring to commit securities fraud and wire fraud, and making false statements to the FBI over $1.6 million in kickbacks to his brother during a four-year period while serving as executive director at Morgan Stanley.

DeMizio, who according to public records resided on Greenway Drive until last year, was sentenced in Brooklyn Federal Court today by U.S. Eastern District Judge John Gleeson.

Prosecutors said DeMizio headed up Morgan Stanley's domestic securities lending desk and "routinely" directed stock loans to smaller brokerage firms in exchange for kickbacks that were paid out to his brother, Craig DeMizio, throughout the 1990s until January 2004.

Kickbacks totaling more than $1.6 million were disguised as "finder fees" and paid to Craig DeMizio between January 2000 and January 2004 even though the brother "had done little if any work" on the transactions, prosecutors charged.

Craig DeMizio, 44, of Colts Neck, N.J., pleaded guilty last year to conspiracy to commit securities fraud and wire fraud. The former Eltingville resident is currently serving 21 months behind bars.

Darin DeMizio is the 29th conviction -- the first to be convicted by a jury -- resulting from the FBI's ongoing investigation into allegations of bribery and kickbacks in the stock-loan industry.

The probe revealed that stock-loan traders at several large brokerage firms funneled millions in "finder fees" to alleged co-conspirators in return for cash bribes and payments to traders, or traders' relatives.